Central Bank of Nigeria Tertiary Institutions Entrepreneurship Scheme (TIES) 2021

The Central Bank of Nigeria, as part of its policy measures to address rising youth unemployment and underemployment, introduces the Tertiary Institutions Entrepreneurship Scheme (TIES) to create a paradigm shift among undergraduates and graduates of Nigerian polytechnics and universities, from seeking white-collar jobs to entrepreneurship. The Scheme aims to provide an innovative financing model that will boost job creation, enhance entrepreneurship development, and support economic growth.

Applications are invited for:

Title: Tertiary Institutions Entrepreneurship Scheme (TIES)

Objectives
The broad objective of the Scheme is to enhance access to finance by undergraduates and graduates of polytechnics and universities in Nigeria with innovative entrepreneurial and technological ideas. Other specific objectives of the Scheme include:

• Provide an enabling environment for co-creation, mentorship and development of entrepreneurial and technological innovations for value creation in partnership with Nigerian polytechnics and universities for the purpose of economic development and job creation;
• Fast track ideation, creation and acceleration of a culture of innovation-driven entrepreneurship skills among graduates of polytechnics and universities in Nigeria;
• Promote gender balance in entrepreneurship development through capacity development and improved access to finance;
• Leapfrog entrepreneurial capacity of undergraduates and graduates for entrepreneurship and economic development in partnership with academia and industry practitioners; and
• Boost contribution of non-oil sector to the nation’s GDP.

Key Performance Indicators
A comprehensive monitoring of specific benchmarks and key performance indicators (KPIs) under the Scheme shall be undertaken regularly. The KPIs (specific and relevant) shall include:

• Number of gradpreneur-led innovative start-ups and businesses with access to finance under the Scheme – 25,000 annually;
• Number of sustainable jobs created by gradpreneur-led businesses financed under the Scheme – 75,000 annually;
• Number of female-gradpreneurs financed as a percentage of total projects financed under the Scheme – 50 per cent per annum;
• Number of agropreneurs financed as a percentage of total projects financed under the Scheme – 40 per cent per annum;
• Number of creative entrepreneurs financed as a percentage of total projects financed under the Scheme – 20 per cent per annum;
• Number of Techpreneurs financed as a percentage of total projects financed under the Scheme – 20 per cent per annum; and
• Number of other gradpreneurs financed as a percentage of total projects financed under the Scheme – 20 per cent per annum.

Features
1.) Term Loan

Eligible Activities (Areas of Business - Tier 1)
Graduates of any Nigerian university or polytechnic within the past seven (7) years with entrepreneurial interest.

Scope of Activities:

• Agribusiness - Production, Processing, Storage and Logistics;
• Information Technology - Application / Software Development, Business Process Outsourcing, Robotics, Data Management;
• Creative Industry - Entertainment, Artwork, Publishing, Culinary / Event Management, Fashion, Photography, Beauty / Cosmetics.
• Science and Technology - Medical Innovation, Robotics, Ticketing Systems, Traffic Systems, Renewable Energy, Waste Management.
• Note: Trading activities shall not be eligible for financing under the Scheme.

Sole Proprietorship:

• Description: For sole proprietorship businesses, limited liability companies and small companies as defined by CAMA
• Tenor: 5 years
• Loan Limit: N5 million
• Interest Rate: 5% from now to February 28, 2022 ( and 9% from March 1, 2022)
• Moratorium: Maximum of 12 months (dependent on type of business).

Requirements
Candidates should provide requisite information and documents, such as:

• Verified First Degree certificate (B.Sc / HND or its equivalent);
• Verified National Youth Service Certificate (NYSC) discharge or exemption certificate;
• Valid mobile phone number (linked to your NIN), BVN, NIN, TIN, and email address;
• Certificate issued by polytechnics and universities evidencing entrepreneurship training;
• Duly signed Global Standing Instruction (GSI);
• Third party guarantee: a senior federal/state civil or public servant, clergy, recognised traditional ruler, professionals (lawyers, doctors, accountants etc.), confirmed staff of established companies.
• Evidence of business registration (certified true copies of relevant CAC documents); and
• Corporate bank account number of business.

Note

• Priority will be given to innovative entrepreneurial activities with high potentials for export, job creation and transformational impact.
• Female entrepreneurs are encouraged to apply.

Prohibition:

• Trading activities shall not be eligible for financing under the Scheme.

Small Company / Enterprise: Tier 2

• Description: For Partnerships registered either as Limited Liability Companies and Small Companies as defined by CAMA
• Tenor: 5 years
• Loan Limit: N25 million
• Interest Rate: 5% from now to February 28, 2022 ( and 9% from March 1, 2022)
• Moratorium: Maximum of 12 months (dependent on type of business)

Requirements
The group shall apply as a business entity registered with the Corporate Affairs Commission (CAC) and certified true copies (CTC) of relevant forms submitted:

• Bank Verification Number (BVN);
• Verified first degree certificate (B.Sc/HND or its equivalent);
• Verified National Youth Service Certificate (NYSC) discharge or exemption certificate;
• Certificate issued by polytechnics and universities evidencing entrepreneurship training;
• Duly signed Global Standing Instruction (GSI);
• Third party guarantee: a senior federal/state civil or public servant, clergy, recognised traditional ruler, professionals (lawyers, doctors, accountants etc.), confirmed staff of established companies.

2.) Equity Investment

Eligibility

• Start-ups, existing businesses expanding or ailing businesses.

Scope of Activities:

• The equity investments shall be in enterprises operating within the eligible scope of activities.

Investment Limit:

• Subject to the limit prescribed in the AgSMEIS Guidelines.

Investment Period:

• Investment made shall be for a maximum period of ten (10) years (not exceeding December 31, 2031).
• There shall be a 3-year lock-in period before exit in order to encourage value creation and boost managerial capacity of business.

Note: The equity investment shall be implemented under the AgSMEIS Equity window.

3.) Developmental (Grant) Component

Details

• Polytechnics and Universities in Nigeria shall compete in the national biennial entrepreneurship competition to raise awareness and visibility of entrepreneurial or technological innovations among undergraduates.
• Body of Experts (BoE) shall be constituted from the private and public sector to evaluate entrepreneurial and technological innovations submitted by Nigerian polytechnics and universities.
• Top five (5) polytechnics and universities at the national level shall be awarded the grant prize on the recommendation of the Body of Experts (BoE).

Scope of Activities:

• Agribusiness
• Information Technology
• Creative Industry
• Science & Technology.

Grant Awards

• First Place - N150.0 million
• Second Place - N120.0 million
• Third Place - N100.0 million
• Fourth Place - N80.0 million; and
• Fifth Place - N50.0 million.

N.B: The grant shall be utilised specifically for the development of the award-winning innovations and to support research and development of high-impact projects within or around the institution's community. The Equity Investment and Developmental (Grant) Components would commence from April 2022.

Application Closing Date
Not Specified.

Method of Application
Applications for participation should be submitted through:
Click here to apply online

For further information on the guidelines and other enquiries, please visit: www.cbn.gov.ng